After two successive fiscals of export sales decline, overseas shipments of made-in-India motorcycles, scooters and mopeds are finally taking off. Total two-wheeler exports of 923,148 units in the first three months of FY2025 are a 17% YoY increase (April-June 2023: 791,316 units), indicating the momentum is back and opening the new fiscal on a good note. The car and SUV segment is also faring well, with export demand up 19% to 180,483 units in Q1 FY2025.
Exports of made-in-India motorcycles, scooters and mopeds were at their highest in FY2022 at 4.44 million units but dropped sharply since then due to multiple factors including rough macroeconomic conditions in key global markets. India Two-Wheeler Inc closed FY2024 with total shipments of 3.45 million units, down 5.3% YoY. Now, the early shoots of recovery are being seen and the April-June 2024 numbers for the top exporting OEMs are proof of that.
FY2022 with 4.44 million units shipped overseas and handsome 35% YoY growth was the best-ever export year for India Two-Wheeler Inc.
If the same pace of growth is maintained or exceeded, it can be surmised that exports of made-in-India scooters, motorcycles and mopeds will record crisp growth in fiscal year 2025. Let’s take a closer look at the top exporting companies.
HOW TWO-WHEELER EXPORTERS HAVE FARED IN APRIL-JUNE 2024
Bajaj Auto, the export market leader, whose FY2024 exports at 14,77,338 units were down 10% YoY, has opened FY2025 on a good note. Dispatches of 368,420 units in Q1 FY2025 are up 6% YoY. In the entry-level up to 110cc motorcycle category, exports were down 31% to 106,953 units, 51% up in the 110-125cc segment to 97,162 units, up 37% in the 125-150cc category to 49,248 units. Export demand improves as the cubic capacity improves: sales in the 150-200cc category (Husqvarna, KTM, Pulsar) at 65,639 units were up 18% (Q1 FY2024: 55,443). And there a 40% YoY increase in export sales of the 200-250cc segment – to 23,423 units (Q1 FY2024: 18,642). With Bajaj kicking off exports of Triumph motorcycles, demand in the 350-500cc category in FY2024 were up 39% to 25,993 units (Q1 FY2024: 18,642).
TVS Motor Co is the longstanding No. 2 two-wheeler exporter and is fast upping the ante. In the April-June 2024 period, the company, has shipped 228,027 units, up 16% YoY. They comprise 195,463 bikes (up 17%), 31,784 scooters (up 6%) and 780 TVS XL mopeds.
TVS two-wheelers are already sold in over 80 countries in key markets across Asia, Africa and Latin America. In the past 10 months, the scooter and bike maker has strategically entered new markets like Nepal, Vietnam, and France. On November 16, 2023, TVS announced its entry into the European market and signed a pact for import and distribution with the Emil Frey Group. The two companies plan to use their collaborative efforts to enter into distribution arrangements for select EU markets. On April 15, 2024, Autocar Professional broke the news about TVS kicking off exports of the made-in-India BMW CE 02 electric scooter, which is jointly developed by BMW Motorrad and TVS and produced at TVS’ Hosur factory in Tamil Nadu. TVS’ Q1 FY2024 EV exports total 2,772 units comprising both the BMW CE 02 and the TVS iQube.
Honda Motorcycle & Scooter India (HMSI), the No. 2 in the domestic market is No. 3 in exports with 138,560 units, up by a substantial 82% YoY. HMSI exported 80,862 scooters, up 79% (Q1 FY2023: 45,271), comprising the Activa series and the Dio. HMSI, currently the No. 3 exporter in bikes (57,698 units, up 87%) exports its products to 58 markets spanning Europe, Central and Latin America, Middle East, South-East Asia, Japan, Australia, New Zealand, and the SAARC nations.
The company has outlined a strategic export growth programme. On April 18, HMSI inaugurated a new state-of-the-art engine assembly line at its Global Resource Factory in Manesar, Gurugram (Haryana), with a focus on CKD (Completely Knocked Down) exports. The new assembly line has a manufacturing managing of 600 engines a day and can produce engines for models ranging from 110cc to 300cc, catering to diverse needs and preferences of Honda customers globally.
India Yamaha Motor, with 59,416 units (up 24%) is ranked fourth among the two-wheeler exporters. The bulk of its exports are bikes – 42,822 units, up 6% – while scooters including 90 Aerox comprise 16,594 units, up 114 percent.
Hero MotoCorp, the world’s largest two-wheeler manufacturer and the domestic market leader, exported 50,992 units in Q1 FY2025, up 44%. This total comprises 42,181 bikes (up 41%) and 8,811 scooters (up 62%). The company has three overseas assembly plants – in Bangladesh (150,000 units per annum) Colombia (80,000 per annum) and Nepal (75,000 units per annum). The Nepal assembly plant, inaugurated recently, will produce the Xpulse 200 4V, Super Splendor, Splendor+ motorcycles, and Xoom 110 scooter.
In FY2024, Hero MotoCorp revamped distribution setup, network expansion, and sales promotion activities in its key African markets of Nigeria, Kenya, and Uganda. There was also more focus on scaling up market share in Latin American countries such as Colombia, Mexico, Guatemala, Bolivia, and Peru, and on increasing retail finance in markets such as Colombia, Bangladesh, Nepal, Mexico, and Africa to improve affordability and boost sales. In addition to its existing portfolio, Hero launched the Xoom scooter and new Hunk 160 bike in Nepal, Bangladesh and LATAM.
Suzuki Motorcycle India is the sole OEM from among the top players to see a decline – 47,991 units, down 24%, with its performance dragged down by the 60% YoY decline in scooter dispatches (13,069 units) while bike exports were up 8% at 22,221 units.
Royal Enfield, whose FY2024 exports of 100,055 units were down 22% on FY2023’s 77,937 units, has made a good start to FY2025. Its Q1 numbers at 34,992 units are up 14% and are indicative of a good export year ahead for the company. RE’s line-up includes the Hunter 350 roadster, Meteor 350, Super Meteor 650 cruiser, Interceptor 650 and Continental GT 650 twins, Shotgun 650, the all-new Himalayan adventure tourer, the Scram 411 ADV Crossover, and the Bullet 350 and Classic 350. Along with its two production facilities at Oragadam and Vallam Vadagal, near Chennai. Royal Enfield also has five modern CKD assembly facilities in Nepal, Brazil, Thailand, Argentina and Colombia.
FY2025 EXPORT GROWTH OUTLOOK: OPTIMISTIC
What is heartening is that the reviving two-wheeler export growth story is benefiting all the major OEMs, which augurs well for India Two-Wheeler Inc. Strong domestic sales can only add tailwind to that growth trajectory.
Judicious management of both domestic and export market sales help inventory management as well as capacity utilisation. Bajaj Auto, TVS and Honda have each recorded smart export growth in the first quarter of FY2025 and with demand picking up in key global markets, it is expected things can only get better in the months to come. The icing on the export ‘cake’ is that the profit margins are often better on the made-in-India products.
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